Correlation Between Viafin Service and Sanoma Oyj
Can any of the company-specific risk be diversified away by investing in both Viafin Service and Sanoma Oyj at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Viafin Service and Sanoma Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viafin Service Oyj and Sanoma Oyj, you can compare the effects of market volatilities on Viafin Service and Sanoma Oyj and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Viafin Service with a short position of Sanoma Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viafin Service and Sanoma Oyj.
Diversification Opportunities for Viafin Service and Sanoma Oyj
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Viafin and Sanoma is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Viafin Service Oyj and Sanoma Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanoma Oyj and Viafin Service is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Viafin Service Oyj are associated (or correlated) with Sanoma Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanoma Oyj has no effect on the direction of Viafin Service i.e., Viafin Service and Sanoma Oyj go up and down completely randomly.
Pair Corralation between Viafin Service and Sanoma Oyj
Assuming the 90 days trading horizon Viafin Service Oyj is expected to generate 0.81 times more return on investment than Sanoma Oyj. However, Viafin Service Oyj is 1.23 times less risky than Sanoma Oyj. It trades about 0.06 of its potential returns per unit of risk. Sanoma Oyj is currently generating about -0.02 per unit of risk. If you would invest 1,292 in Viafin Service Oyj on September 3, 2024 and sell it today you would earn a total of 648.00 from holding Viafin Service Oyj or generate 50.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viafin Service Oyj vs. Sanoma Oyj
Performance |
| Timeline |
| Viafin Service Oyj |
| Sanoma Oyj |
Viafin Service and Sanoma Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viafin Service and Sanoma Oyj
The main advantage of trading using opposite Viafin Service and Sanoma Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viafin Service position performs unexpectedly, Sanoma Oyj can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sanoma Oyj will offset losses from the drop in Sanoma Oyj's long position.| Viafin Service vs. SSH Communications Security | Viafin Service vs. Tamtron Group Oyj | Viafin Service vs. Metsa Board Oyj | Viafin Service vs. Qt Group Oyj |
| Sanoma Oyj vs. Nordea Bank Abp | Sanoma Oyj vs. Detection Technology OY | Sanoma Oyj vs. Remedy Entertainment Oyj | Sanoma Oyj vs. Sotkamo Silver AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |